Val Sims is a self$-$employed CPA and is the sole practitioner in her tax practice. She has had several situations arise this year involving client representation, client records, and client fee arrangements. Val is concerned that her actions may be in violation of the Circular $230$ regulations governing practice before the Internal Revenue Service $($IRS$).$ In the table below, based on IRS Circular $230$ Part B provided in the exhibit, indicate whether Val is in violation of the regulations for each of the actions described. Select either "Yes" or $"$No$"$ for each number. $1.$ Val has prepared tax returns and provided tax advice for Charles and Diane, a married couple, for several years. This year, Diane informed her that she and Charles are getting a divorce and asked Val for specific advice as to how she should negotiate an advantageous marital property settlement. Because the divorce was still pending at the end of the year, she also asked Val to prepare their joint income tax return for the year. Val informed Diane that there was a potential conflict of interest and Diane gave informed consent in writing. Val did not discuss the matter with Charles. Val performed the requested services and Diane paid the bill. Both Charles and Diane signed and filed the joint income tax return Val prepared for them. $2.$ Val included in an advertisement in a local trade association printed newsletter that her fee for initial tax consultations is $$500.$ The newsletter was published June $1$ of the current year. Edmonds, a potential new client who saw the advertisement in the newsletter, met with Val on June $20$ for an initial consultation regarding the tax ramifications of organizing his new business. The consultation lasted all afternoon and the issues were quite complex, so Val billed Edmonds $$1,000$ based on her hourly billing rate. $3.$ Val prepared the corporate income tax returns for a new client, Franklin Corporation. Her fee, based on her hourly rate, was $$3,000.$ The client took an aggressive tax position on the return related to deduction of certain costs and Val agreed to reimburse the client $25$ percent of the fee if the position taken on the tax return was challenged by the IRS. $4.$ Grant Corporation was audited by the IRS for its prior$-$year tax return, which was prepared and filed by the company's controller. Grant Corporation engaged Val to handle the appeals process with the IRS. Val agreed to charge the new client $25$ percent of the amount by which she is able to get the IRS to reduce the IRS assessment.